Financial Statement Analysis Exam #1
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6 Terms
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What is a current asset?
An asset that is used up or converted to cash within one year
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What is a current liability?
Requires payment within one year
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Working Capital
Current assets - Current liabilities
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Common Size Balance Sheet
Each item is recast as percent of total assets
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Operating expense margin
Operating expense / sales
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Common size income statement
Express each line item as a percentage of total revenue
Note 
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